What makes you say an option is overpriced/underpriced ?

[OptionsOptionsOptions]

How about a reliable return of 40% on max 5 mill with the options strategies you mentioned?
Is this in the realm of what is possible?

Not enough option volume and open interest to get a 40% return from a $5,000,000 account.

 

[IndyJonerJr]

The beauty of the options market is that it has a huge number of moving parts and there are always opportunities. The unfortunate (or fortunate, depends which side of the fence you are one) thing is that these opportunities (especially the ones that persist) are usually not large enough to be interesting. It is fairly easy to consistently make a 100% return in options on something like $100 or $200k (i could name a bunch of things i'd look at in this case). It's pretty damn hard to have a reliable 10% return on a $100mm.

I would like to hear what you speak of, I know of no such trades, besides blowing up your account or losing it in a couple bets

 

[jtunner]

I would like to hear what you speak of, I know of no such trades, besides blowing up your account or losing it in a couple bets

Same. sle if you could elaborate for those who are not as familiar with the options space...

 

[Kevin Schmit]

Same. sle if you could elaborate for those who are not as familiar with the options space...

Sle has apparently left the building.

However if you read through all 191 pages of his previous posts, taking notes as you go, you will find a reasonable number of actionable edges spelled out, and many more broadly hinted at.

 

[IndyJonerJr]

Sle has apparently left the building.

However if you read through all 191 pages of his previous posts, taking notes as you go, you will find a reasonable number of actionable edges spelled out, and many more broadly hinted at.

such as...

 

[Saltynuts]

such as...

Yea, help a homie out lol.

 

[arbs-r-us]

How can I determine this?

When you get filled on a buy, it's overpriced, and when you get filled on a sell, it's underpriced. Very simple.